Investor Outlook: Home Depot earnings beat lifts stock despite sales drop
BNN Bloomberg
Home Depot shares rise after a fourth-quarter earnings beat, as stable demand and cost controls offset housing and tariff pressures.
BNN Bloomberg spoke with David Bellinger, director and senior equity analyst at Mizuho, who said improving sales trends, steady maintenance demand and better cost visibility helped offset macro pressures, including tariffs and elevated mortgage rates.
Read the full transcript below:
ROGER: As we discussed, Home Depot shares are rising after the company reported fourth-quarter earnings that beat estimates for the first time in a year. Joining us now for analysis is David Bellinger, director and senior equity analyst at Mizuho. David, thanks again for joining us. Initial reaction to the report?
DAVID: Great. Thanks for having me on. This was a good, not great quarter from Home Depot. You had same-store sales in the U.S. up fractionally, about three-tenths of a percentage point. So not all that much, but expectations were very low going into the print. We were looking for a negative number, and much of the Street was as well. What you can see here is that there are some signs of life in the home improvement market. It has been more stable than anything. We had a lot of winter weather activity throughout the eastern seaboard of the U.S., even the southern U.S., in mid- to late January, so that perked sales up a bit. It is almost as if the demand environment has been stable and there is a case for gradual improvement as 2026 progresses. I think that is what has the stock up a little more than three per cent today.
ROGER: And what is that case? What is giving you some optimism?
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